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Why did BigCommerce stock drop?

Last updated on September 25, 2022 @ 12:59 am

BigCommerce, Inc. is a global e-commerce company with headquarters in San Francisco, California. The company provides a platform for businesses of all sizes to sell online. In early February, BigCommerce announced that it had been acquired by CloudCommerce, Inc.

(NAsdaQ: CLDX). The CloudCommerce acquisition was significant for a number of reasons. First, CloudCommerce is one of the largest e-commerce companies in the world, with a market cap of over $2 billion. Second, the CloudCommerce acquisition doubled BigCommerce’s size, giving the company a wider customer base and more resources to grow its business.

However, the CloudCommerce acquisition also raised some eyebrows. BigCommerce’s stock price dropped following the announcement, falling by almost 20% in after-hours trading.

PRO TIP: BigCommerce stock may drop due to various reasons such as company performance, global economic conditions, etc. Investors and traders should be cautious about investing in BigCommerce stock.

Some analysts speculated that the drop may have been related to concerns about BigCommerce’s future as a standalone company. Others speculated that the drop may have been related to concerns about CloudCommerce’s plans for the BigCommerce platform.

Regardless of the reasons, the drop in BigCommerce’s stock price was significant. It may indicate that investors are not confident in the company’s future prospects, and that they would prefer to invest in companies with a better track record.

Given the CloudCommerce acquisition’s size and the company’s relatively low stock price, it is likely that the acquisition will have a significant impact on BigCommerce’s future growth.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.